JPMorgan prints; Pacific Life plans deal; pipeline builds; Wal-Mart mixed; Northrop firms

By Cristal Cody

Tupelo, Miss., Oct. 13 – JPMorgan Chase & Co. priced a $1.26 billion offering of high-grade perpetual fixed-to-floating-rate non-cumulative preferred shares on Friday.

In other activity, Banco Santander, SA wrapped a three-day roadshow for a Rule 144A and Regulation S dollar-denominated offering of senior notes (A3/BBB+/A-), according to a market source.

Citigroup Global Markets Inc., J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC and Santander Investment Securities Inc. are the leads.

Coming up on Monday, Pacific Life Insurance Co. is set to hold investor calls for a Rule 144A and Regulation S offering of 50-year fixed-to-floating-rate surplus notes.

Also in the week ahead, the Federation des caisses Desjardins du Quebec (Aa2/A+/AA-) plans to hold a roadshow from Wednesday through Oct. 20 for a dollar-denominated Rule 144A and Regulation S notes offering, according to a market source. Barclays is the bookrunner.

Primary action is expected to be strong in the upcoming week with about $25 billion to $30 billion of supply forecast, a market source said.

In the secondary market on Friday, the Markit CDX North American Investment Grade 29 index tightened about 1 basis point to close at a spread of 54 bps.

Among individual names, Wal-Mart Stores, Inc.’s $6 billion of notes (Aa2/AA/AA) priced in six tranches on Wednesday traded flat to about 3 bps better.

Northrop Grumman Corp.’s $8.25 billion of fixed-rate senior notes (Baa2/BBB/BBB) sold in five tranches on Tuesday were about ½ bp to 2 bps better in secondary trading.

JPMorgan sells preferreds

JPMorgan Chase sold $1,257,500,000 of 4.625% perpetual fixed-to-floating-rate non-cumulative preferred shares (Baa3/BBB-/BBB-) on Friday at par, according to market sources.

Initial price thoughts were in the 4.75% area.

The securities are non-callable for five years.

J.P. Morgan Securities LLC was the bookrunner.

The New York-based financial services firm plans to use the proceeds for general corporate purposes.

Pacific Life plans deal

Pacific Life Insurance (A3/A/A) plans to price a Rule 144A and Regulation S offering of 50-year fixed-to-floating-rate surplus notes, according to a market source.

The company is set to hold fixed income investor calls on Monday.

Barclays, Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC and Wells Fargo Securities LLC are the arrangers.

Pacific Life Insurance is a Newport Beach, Calif.-based insurance company.

Wal-Mart mixed

Wal-Mart’s 2.35% notes due Dec. 15, 2022 tightened to 38 bps bid, 36 bps offered in the secondary market, a source said.

The company sold $1.25 billion of the bonds at a 40 bps spread over Treasuries.

Wal-Mart’s 3.625% bonds due Dec. 15, 2047 were mostly unchanged at 75 bps bid, 73 bps offered on Friday.

The company sold $1 billion of the bonds with a 75 bps spread over Treasuries.

The discount retailer is based in Bentonville, Ark.

Northrop tightens

Northrop Grumman’s 2.55% notes due Oct. 15, 2022 were quoted on Friday tighter at 58 bps bid, 55 bps offered, a market source said.

The company priced $1.5 billion of the notes on Tuesday at a spread of 60 bps over Treasuries.

Northrup Grumman’s 4.03% notes due Oct. 15, 2047 traded better at 113 bps bid, 110 bps offered.

The $2.25 billion tranche priced at 115 bps over Treasuries.

The global security company is based in Falls Church, Va.

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